This publication presents results in respect of the 2001-02 financial year, from an Australian Bureau of Statistics (ABS) survey of market research businesses. This is the third time the ABS has conducted this survey, previous statistics were released for 1992-93 and 1998-99.

The scope of the survey was employing businesses classified to class 7853 (Market Research Services) of the Australian and New Zealand Standard Industrial Classification (ANZSIC). This class comprises businesses predominantly engaged in the provision of market research services.

COMPARISONS WITH PREVIOUS SURVEY RESULTS

This survey has been designed primarily to provide a measure of the financial and business structure of market research businesses operating in Australia. While comparisons are made between 2001-02 survey results and earlier iterations of the Market Research Services Survey, the survey has not been designed to provide highly accurate estimates of change, so any comparisons made to previous surveys should be used with caution. For further information, see paragraphs 15-17 of the Explanatory Notes.

COMMENTS ON THIS PUBLICATION

The ABS welcomes comments and suggestions from users recommending industries and data items for inclusion in future surveys. These comments should be directed to The Director, Service Industries Business Statistics Centre, Australian Bureau of Statistics, GPO Box 2796Y, Melbourne, Vic. 3001.

ROUNDING

Where figures have been rounded discrepancies may occur between the sum of component figures and the total.

ABBREVIATIONS

ABN

Australian Business Number

ABS

Australian Bureau of Statistics

ANZSIC

Australian and New Zealand Standard Industrial Classification

ATO

Australian Taxation Office

GDP

Gross Domestic Product

GE

group employer

OPBT

operating profit before tax

PAYGW

pay-as-you-go withholding

RSE

relative standard error

SE

standard error

TAU

type of activity unit

SUMMARY OF OPERATIONS

At the end of June 2002, there were 334 businesses mainly providing market research services. Of the 334 businesses, 211 (63%) carried out qualitative research such as in depth interviews and focus group discussions and 222 (66%) provided quantitative research services.

There were 12,311 persons working in market research services businesses and employment was mainly made up of data collection/processing employees with 9,447 persons (77%). There were 1,811 (15%) people whose main activity was client services, research, design and analysis.

During 2001-02, the total income of market research businesses was $587 million. Qualitative research services income ($176 million) and quantitative research services income ($310 million) represented 30% and 53% respectively of total income.

Total expenses for market research businesses during 2001-02 were $529 million. Labour costs were the highest single expense ($279 million), representing 53% of total expenses.

The operating profit before tax for market research businesses was $58 million (down from $72 million in 1998-99). The operating profit margin fell from 15.9% in 1998-99 to 10.1% in 2001-02.

MARKET RESEARCH SERVICES, Summary of Operations

1998-99

2001-02

Businesses at end of June (no.)

no.

272

^334

Employment at end of June

Client services, research, design and analysis

persons

na

1 811

Administrative support

persons

na

^714

Data collection/processing

persons

na

9 447

Other

persons

na

^339

Total

persons

10 744

12 311

Income

Income from market research services

Qualitative research

$m

104.2

*175.7

Quantitative research

$m

306.5

309.8

Other (including desk research)

$m

28.1

78.1

Total market research income

$m

438.8

^563.5

Other income

$m

16.9

23.3

Total

$m

455.8

586.8

Expenses

Labour costs

$m

203.4

279.2

Other expenses

$m

180.5

250.0

Total

$m

383.9

^529.2

Operating profit before tax

$m

71.9

*58.1

Operating profit margin

%

15.9

10.1

^ estimate has a relative standard error of between 10% and 25% and should be used with cautionna not available* estimate has a relative standard error of between 25% and 50% and should be used with caution